CDT Equity Inc. heads into its May 20 earnings report having shed nearly two-thirds of its value in a single month — a collapse that makes the upcoming print far more than a routine quarterly update.
The price tells the harshest part of the story. CDT closed at $1.725, down 14% on the week and 64% over the past month, with the stock now in deeply oversold territory — RSI14 at just 26.95. Against that backdrop, borrow costs are extraordinary: the cost to borrow has run at roughly 382% annualised, easing only slightly from above 460% earlier this month. Yet despite that punishing borrow rate, the actual short position has collapsed. Short interest fell 58% in one week to just 1.7% of the free float — its lowest level in months — with availability currently around 95%, meaning borrow supply is relatively ample relative to what shorts have outstanding. The signal is striking: even with borrow costs this high, shorts are covering rather than pressing the trade. That suggests the sharp price decline has already forced significant de-risking on the short side, not a fresh buildup.
The ownership picture adds important texture. One entity, Taylor Mark, holds approximately 42.5% of shares — a concentration level that makes trading mechanics and sentiment swings outsized relative to the company's $8.4 million market cap. Corvus Capital, a board-represented investment firm, bought 100,000 shares at $1.90 on May 13, a modest $190,000 in value but notable given the stock's trajectory. That follows a $500,000 acquisition by founder and CEO Andrew Regan in June 2025 at $3.23 — a price the stock has long since broken below.
CDT's recent earnings history offers no comfort for those hoping for calm. The last two prints both produced sharp negative reactions: a 26% single-day drop in April 2026 and a 23% fall in early April following the prior event. March 2026 was the exception, with the stock adding 11% on the day. The pattern is binary and volatile, which makes directional positioning into the report a high-stakes exercise at a stock already priced close to distress levels.
On the fundamental side, CDT Equity's subsidiary Sarborg filed a patent covering compounds in the cystic fibrosis market in early May, and the company has been actively seeking licensing partners for a male infertility treatment — catalysts that frame CDT less as a traditional life sciences tools business and more as an early-stage commercialisation play. With no analyst coverage, no consensus estimate, and valuation data that predates the recent sell-off by months, the May 20 report will be less about beating a number and more about whether management can articulate a credible path forward for assets whose commercial value the market has been aggressively discounting.
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